Rent vs Renting...

One of the most common things I hear from people I meet is "I can't afford to buy a house." For whatever reason they have already decided, many times without doing any research, that home ownership is beyond their reach. Typically I hear three common reasons: ; My credit score is too low. - Really? Who told you that? A banker at a corporate bank? A television commercial that shows happy clients having a 720? If you have awful credit that still doesn't mean homeownership is out of your reach, it just might be delayed. There are ways to rebuild your credit. The first step is to find a local lender to work with that can help you navigate the financial currents to get to where you want to go. Why go local? Because they get to know you, you get to know them and you are more than a number. They are invested to help you beyond getting your business because if you are happy you will tell your friends. Local business live and die by their reputation so they go the extra mile to serve their customers. Once a local expert examines your financial status they can tell you what you can do now or if your credit is less than perfect what you need to do to get where you need to be. As an added benefit they know about different loan types and programs that you could qualify for to help you purchase your home.; I can't afford a house payment. - This one blows my mind, because sometimes it's true. The amount you pay on your house payment depends on a myriad of different factors. What type of loan you are getting, how much (if any) money you are putting down, the term of the loan, etc, etc. This is where that local financial expert comes into play. In most cases, rent may end up being a bit cheaper to start. However, rent usually increases over time while your house payment normally stays the same. Rent annually will normally rise by 5%. So if you track a 7 year period with a renter and a homeowner say the renter pays $700 a month while the homeowner pays $900. The first year the rent is 700, the second year 735, the third it is at 771. In this example it doesn't take long for the rent to be more than the house payment. Keep in mind that the people renting property need to collect more than they make in payments on their note plus repairs to be turning a profit.; Everything I can afford is in need of too much work. - Okay, this one is perfectly valid. When you are a first time home buyer you might end up in a house with all gold bathroom fixtures. Or the wall paper from 1954. Or (shudder) purple shag carpet. But if the foundation is sound, the wiring is good, the plumbing is solid and the roof doesn't leak you are off to a good start. I recommend every client I have gets a home inspection so they can make an informed decision on what the actual costs of a home should be. After that, well the home improvement shows on television are popular for a reason. Sweat equity can help you fix up a house, or you can do a project at a time with a contractor. When you are done you will have the home you always wanted while having a house payment you can afford.

My best advice for anyone who is curious is to go and talk to a lender. Find out what your options are. If your credit is shot find out what you need to do to fix it. Then when you are ready to look call me and I can help you find the home you want, or if you aren't local I can help you find a great agent to help you where you live.